Question 1

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. 
-Refer to Table 4-5. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Accepted Answer

A)   
B)   
C)   
D)   E) A) and B)
F) None of the above

Question 2

Table 4-9 
-Refer to Table 4-9. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) All of the above
F) None of the above

Question 3

Figure 4-20 
-Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)   $15 and 400 units.
B)   $20 and 600 units.
C)   $25 and 500 units.
D)   $25 and 800 units.E) All of the above
F) B) and C)

Question 4

Figure 4-18 
-Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.E) All of the above
F) C) and D)

Question 5

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.E) All of the above
F) A) and B)

Question 6

Figure 4-20 
-Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

Accepted Answer

A)   The market is in equilibrium.
B)   Equilibrium price is equal to equilibrium quantity.
C)   There is no pressure for price to change.
D)   The quantity of the good that is bought and sold is 600 units.E) C) and D)
F) B) and D)

Question 7

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-16 
-Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Accepted Answer

A)   decrease in the number of commercial bakers.
B)   improvement in oven technology.
C)   decrease in the price of butter.
D)   decrease in the price of chocolate cake.E) B) and C)
F) A) and C)

Question 9

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-10. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 500 cases when the price is $5.00, which of the following statements is correct?

Accepted Answer

A)   The market is in equilibrium at a price of $5.00.
B)   There is a surplus of 100 cases at a price of $5.00.
C)   There is a shortage of 100 cases at a price of $5.00.
D)   There is a shortage of 50 cases at a price of $5.00.E) All of the above
F) A) and B)

Question 10

Today's supply curve for iPods could shift in response to a change in

Accepted Answer

A)   today's price of iPods.
B)   the expected future price of iPods.
C)   the number of buyers of iPods.
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 11

Which of the following events must cause equilibrium price to rise?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) None of the above
F) A) and B)

Question 12

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Accepted Answer

A) True 
 B)False

Question 13

A group of buyers and sellers of a particular good or service is called a

Accepted Answer

The answer of A group of buyers and sellers of...

Question 14

Table 4-8 
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Accepted Answer

A)   decrease by 6 units.
B)   decrease by 12 units.
C)   increase by 6 units.
D)   increase by 12 units.E) A) and B)
F) All of the above

Question 15

A movement downward and to the right along a demand curve is called a(n)

Accepted Answer

A)   increase in demand.
B)   decrease in demand.
C)   decrease in quantity demanded.
D)   increase in quantity demanded.E) None of the above
F) B) and C)

Question 16

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Accepted Answer

A)   the ticket price was above the equilibrium price.
B)   the ticket price was below the equilibrium price.
C)   the ticket price was at the equilibrium price.
D)   nothing about the equilibrium price.E) None of the above
F) B) and C)

Question 17

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)   Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
C)   Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)   None of the above is correct.E) All of the above
F) A) and D)

Question 18

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-21 
-Refer to Figure 4-21. At a price of $16, there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 3 units.
C)   shortage of 1 unit.
D)   shortage of 3 units.E) B) and C)
F) A) and C)

Question 20

Figure 4-8 
-Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor's e­readers, a substitute good, decreases. Which of the following changes would occur?

Accepted Answer

A)   a movement along D2 from point A to point B
B)   a movement along D2 from point B to point A
C)   a shift from D1 to D2
D)   a shift from D2 to D1E) C) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor's ereaders, a substitute good, decreases. Which of the following changes would occur?

Correct Answer
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Correct Answer
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A movement downward and to the right along a demand curve is called a(n)

Correct Answer
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Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

Correct Answer
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Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct Answer
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Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct Answer
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Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct Answer
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Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Correct Answer
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Which of the following events must cause equilibrium price to rise?

Correct Answer
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The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Correct Answer
verified

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

Correct Answer
verified

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Correct Answer
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Figure 4-20 -Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

Correct Answer
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Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Correct Answer
verified

An increase in the price of ink will shift the supply curve for pens to the left.

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct Answer
verified

A group of buyers and sellers of a particular good or service is called a

Correct Answer
verified

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Correct Answer
verified

Today's supply curve for iPods could shift in response to a change in

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor's e­readers, a substitute good, decreases. Which of the following changes would occur?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A movement downward and to the right along a demand curve is called a(n)

Correct AnswerverifiedShow Answer

Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct AnswerverifiedShow Answer

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium price to rise?

Correct AnswerverifiedShow Answer

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

Correct AnswerverifiedShow Answer

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Correct AnswerverifiedShow Answer

An increase in the price of ink will shift the supply curve for pens to the left.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct AnswerverifiedShow Answer

A group of buyers and sellers of a particular good or service is called a

Correct AnswerverifiedShow Answer

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Correct AnswerverifiedShow Answer

Today's supply curve for iPods could shift in response to a change in

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor's ereaders, a substitute good, decreases. Which of the following changes would occur?

Correct Answer
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